Navigating uncertainties: a tri-factorial evaluation of risk management adoption in MSMEs

I Gusti Ketut Agung Ulupui, Gentiga Muhammad Zairin, Ayatulloh Michael Musyaffi and Febe Dwi Sutanti

Cogent Business & Management, 2024, vol. 11, issue 1, 2311161

Abstract: The study explores the implementation of risk management in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, with the objective of enhancing their adoption and fostering sustainable business practices. Despite the overarching goal, many MSMEs in Indonesia still lag in the implementation of risk management. The research specifically targets MSMEs without existing internal control and risk management systems. The questionnaire was distributed to 200 MSME representatives through an online Google Form. Out of these, we received 140 completed responses. After a thorough review for completeness and relevance to the study criteria, 111 responses were deemed suitable for analysis, resulting in a response rate of 70%. After the data is obtained, it is analyzed using partial least squares using smart-pls 4.0. Relative advantage (RA) is the most influential indicator on Adoption of Risk Identification (ARI). Other important factors are complexity (COMX), and security (SECU) for MSMEs. Conversely, organizational readiness (OR) and competitive pressure (CP) were found not to have a significant impact on ARI, suggesting these are not primary factors in enhancing risk identification adoption and business sustainability. These findings provide insightful implications for the strategic prioritization of risk management components in the Indonesian MSME sector.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2024.2311161 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:11:y:2024:i:1:p:2311161

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2024.2311161

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().